The balance of payments measures the inflows and outflows of money from tourism, foreign aid, military expenditures, and foreign investments as well as flows resulting from exports and imports.

Question

Quizplus · Accepted Answer

The statement is true. The balance of payments is a record of all transactions between one country and the rest of the world over a period of time, including income flows and monetary flows resulting from exports and imports, foreign aid, military expenditures, tourism, and foreign investments.

The Balance of Payments Measures the Inflows and Outflows of Money